Business Council Renews Call for National Productivity Commission Amid Productivity ‘Emergency’
March 28, 2024 (Vancouver, B.C.) – The Business Council of British Columbia (BCBC) is renewing its call for the federal government to establish an Australian-style Productivity Commission to help address Canada’s terrible productivity performance that is eroding our standard of living.
The request follows remarks made this week by Carolyn Rogers, Senior Deputy Governor of the Bank of Canada, where she warned that productivity has become a national “emergency.” Her speech follows three years when the country’s labour productivity (output per hour worked) has fallen outright.
“We have been raising the alarm about productivity for several years,” says David Williams, BCBC’s Vice President of Policy. “Productivity is what drives real incomes and living standards over the long run, which is why it’s so important to Canada’s prosperity.”
In a 2021 peer-reviewed study, Williams found that if Canada’s labour productivity growth had not slowed by half after 2000, the average worker would be earning over C$13,000 more annually today.
Lacklustre productivity growth explains much of the income gap between Canada and other OECD countries. In 2022, Canada’s income per person was only C$54,000, well below Australia at C$59,300 and United States at C$74,200.
“Working smarter as a country means we can all enjoy a standard of living that is rising rather than going sideways or falling. That’s especially important for young people as they strive to build a future,” says Williams. “Canada needs a statutory agency, like the Bank of Canada or the Parliamentary Budget Office, tasked with providing independent policy advice to government on structural policies that can help improve productivity.”
Established in 1998, Australia’s Productivity Commission operates under its own legislation and budget. It has conducted public inquiries on many areas of interest including airport regulations, tariffs, electricity networks, supply chains, patent licensing, retirement incomes, veteran’s compensation and more.
The Commission’s work has kept productivity “top of mind” for Australian policymakers for decades. In contrast, Canada’s interest in productivity has proven haphazard over the years.
“With the 2024/25 federal budget expected to be released on April 16, the alarm bells couldn’t be ringing any louder," says BCBC President and CEO, Laura Jones. "BCBC hopes to see indicators in the budget that the government is taking the situation seriously and has a plan to respond to the country’s productivity crisis.”
CONTACT
Please contact media@bcbc.com for interview requests.
ABOUT BCBC
Established in 1966, the Business Council of British Columbia is a non-partisan organization dedicated to promoting prosperity for current and future generations.
Comprised of over 200 leading B.C. companies, post-secondary institutions and industry associations, BCBC provides credible information, fosters cross-sectoral relationships and advances bold and practical solutions to the policy challenges of our time.
